Nearly all of China’s largest internet firms like Alibaba Group and JD have established a presence in online grocery. For instance, food delivery service Meituan has its own grocery arm, offering both traditional digital grocer as well as WeChat-based group-buy model. Meanwhile, Chinese online grocery app Dingdong Maicai secured USD 700 million of funding from investors including DST Global and Coatue Management to fund its battles in the online grocery market. Dingdong said it will use the money to expand its business network and invest in supply chains and team building. Established in Shanghai, Dingdong is competing with platforms operated by Alibaba Group, JD and Pinduoduo in China’s crowded online grocery sector, which has exploded since last year.
The fundamental conditions for efficient online grocery shopping are now in place in China. In just the first two months of 2021, the amount of funds raised by the sector’s operators has already surpassed the investment sum of all of 2019, with the average deal size running at more than USD 460 million, according to ITjuzi.
Some tech firms in Southeast Asia also have joined the online grocery game. Grab’s online grocery shopping delivery service, for example, is on its way to grabbing a sizable share of the Southeast Asian market on the heels of an expansion. Grab recently added Cambodia to its list of countries serviced by its GrabMart shopping and delivery app, now available in 8 Southeast Asian countries like Singapore and Malaysia. GrabMart, which also delivers a wide array of consumer goods as well as groceries, is now available to consumers in 50 cities across Southeast Asia.
For Asian tech companies, the battleground of them has expanded into the lifestyle sector. They are scrambling to capture grocery shoppers of all ages. It is noticeable that a new business model that’s getting a lot of funding is that of Nice Tuan, the so-called community group buying. Thus, tech companies are clearly aggressive about online grocery and are diversifying their portfolios to secure market shares.
Source: Grab
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